Manufacturers seek zero GST on low price biscuits

NEW DELHI: Biscuit manufacturers have sought ‘nil’ tax on low price biscuits under the proposed Goods and Services Tax (GST). The manufacturers here said that low price biscuits category biscuits are items of mass consumption and higher taxes will have an adverse impact on production as well as demand of this food item. “A flat 12 per cent Goods and Services Tax (GST) on biscuits will be a grave injustice to the poor as glucose, marie and milk biscuits retailed below Rs 100 per kg are treated as merit goods and largely consumed by the poor,” Biscuit Manufacturers Welfare Association president Haresh Doshi said.

He said that central government had reduced central excise in 2003 to 8 per cent from earlier 16 per cent and exempted excise on biscuits up to Rs 100 per kg in 2007-08. Ajmer Food Products managing director Manoj Sharda said that low price category biscuits comprise 52 per cent of the 35 lakh tonnes biscuits sold annually in the country.PTI